Support for NewBuy after first figures met with criticism

Published: 06/06/2012

There have been around 400 properties reserved through the government’s NewBuy initiative since its launch in March, according to the Home Builders Federation show.

However the figure has been met with criticism by some in the industry dubbing it as “inadequate” stemming expectations that the government will fall short of its originally projected target of 100,000 NewBuy sales in the next three years.

Yet other brokers in the industry are frustrated by those who automatically jump on the criticism bandwagon of any new venture without giving it opportunity to make a real impact.

The 100,000 figure targeted by the Government may be a tad overzealous. However the scheme does, at the end of the day, offer customers another route into the market.

While it clearly has certain limitations and cannot provide a solution for everyone, a varied lender portfolio can only be a step in the right direction, and should the scheme fall short of target but yet help a solid number of first time buyers and homemovers, will it still be deemed a failure?

There are currently five high street lenders – Nationwide, Barclays, NatWest, Halifax and Santander - offering 95 per cent loan-to-value (LTV) for new build properties under the NewBuy Guarantee scheme.

Content correct at time of publication